You can buy a $50 savings bond today for $25 and redeem the bond in 10 years for

Question

You can buy a $50 savings bond today for $25 and redeem the bond in 10 years for its full face value of $50. You could also put your money in a money market account that pays 7% interest per year. Which option is better, assuming they are of equal risk?

Bensen Co. paid a dividend of $5.25 on its common stock yesterday. The company's dividends are expected to grow at a constant rate of 8.5% indefinitely. The required rate of return on this stock is 15.5%. You observe a market price of $78.50 for the stock. Should you purchase this stock?

Assuming two investments have equal lives, a high discount rate tends to favor

Assume that you have $330,000 invested in a stock that is returning 11.50%, $170,000 invested in a stock that is returning 22.75%, and $470,000 invested in a stock that is returning 10.25%. What is the expected return of your portfolio?

Investment A has an expected return of 15% per year, while investment B has an expected return of 12% per year. A rational investor will choose

Explanation / Answer

As per Chegg Guidelines we answer one question per post. I have answered more than 1 question. Kindly post remaining questions in separate post to get the best answers Expected Return on Portfolio is 12.87% Invt in Stock                                  330,000.00                                  170,000.00                                  470,000.00                                  970,000.00 A Rationale Investor will chose Investment A since it has higher return

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